Society is an organized group of people with the sole objectives of rendering non-profitable services for the welfare and development of society. Registration of such societies will have legal identification and are eligible to avail the benefit of tax-exemption. In this article, we look at the process and procedure for obtaining Karnataka Society Registration in detail.
Society registrations are done under the Societies Registration Act, 1960 that governs the operations of societies in India. The Karnataka Adaptations of Laws Order adapted the [Karnataka] Societies Registration Act, 1960 to provide for the registration of scientific, literary, charitable and other societies. The act extends to the whole of the State of Karnataka.
Societies under Karnataka Societies Registration Act, 1960:
The Karnataka Societies Registration Act allows organizations established for the following purposes to be registered under this act.
- Promotion of charitable activities.
- Promotion of educational, science, art, literature, or the fine arts.
- Promotion of sports
- Diffusion of knowledge pertaining to commerce and industry
- Political education training
- Maintenance of library
- Collection/preservation of historical monuments, technical and philosophical research.
Karnataka Society Registration
The following are some of the major aspects of Karnataka society registration:
Who can apply?
- Any person who desires to register a society for charitable purposes can apply for the registration.
- Self-Help Groups do not come under the preview of Societies Registration Act 1960 as those organizations are formed to help the group members start a business / an occupation/trade by lending money, which is considered as business activities and not charitable activities.
- The societies whose aims and objectives are confined to the welfare and interest of its members only such as Pensioners Association, Housing Societies etc. do not come under the scope of Societies Registration Act 1960.
Conditions to Register a Society
- The society other than a society of which the State Government is a member should be formed with at least seven persons.
- The seven persons should be above the age of 18.
Competent Authority
As per section 2 (e) of the Karnataka Societies Registration Act, 1960 the District Registrars of Co-operative Societies appointed by the State Government of Karnataka is the competent authority for the registration of societies. Additional Joint Deputy or Assistant Registrars will be appointed to assist the Registrar if required.
Society can be registered in the Registrar Office of the District where the society is intended to be established.
Benefits of Society Registration
- Society gets legal recognition and is considered to be a separate legal entity
- The Society after registration, gains the ability to sell, hold, acquire, lease, and rent a property. The compliance requirements are less complex when a registered Society holds property in its own name. Further, there are no legal hassles when there is a transfer of ownership in the property
- A registered Society has the right to impose legal proceedings in court when the need arises
- On registration, the Society becomes eligible for tax exemptions, provided it has the 80G certificate from the Income Tax authorities
- Regardless of the change in the membership, the Society once registered, always remains a separate legal entity
- Members are not liable for the debts and liabilities of the Society. But in case of deliberate fraudulent actions on behalf of the members, they will be held responsible for the same
- A registered Society can hold an account in an authorized bank in its own name
- A registered Society has the privilege to collect and accumulate funds from external sources.
The documents required to be submitted for society registration in Karnataka are as follows:
- Information in Application Form
- Memorandum of Association and Rules and regulations duly attested by one of the subscribers to the memorandum authorized by proposed society
- Bye-laws of the Association
- List of executive committee to the Memorandum of Association along with photographs and signature
- Proceedings of the first meeting to form a society
- Challan for having paid the prescribed fee
- Affidavit in the prescribed form in Rs.20/- E-Stamp paper duly notarized
- Copy of Address proof and proof of identity. (Any one of the following)
- Adhaar Card
- Voters ID
- Driving License
- Address proof of society proposed to be registered
- Rental Agreement
- Tax payment receipt with NOC.
Key Deliverables
- Registration Certificate
- Bye-laws of the Society